Q: How do I renew my license?

A: Maine individual non-resident producer licenses are perpetual so there is no expiration date and no renewal fees. Maine individual resident producer licenses are renewed automatically by our office the first business day following the Continuing Education (CE) due date, as long as all CE Requirements have been met.

Q: How do I obtain my Access Code?

A: Access Codes are printed on all new licenses. If you do not have your access code, please submit your request via e-mail at www1.maine.gov/cgi-bin/online/licensing/access_request.pl or call 207-624-8475 and request Producer Licensing. Once an individual licensee logs in with their access code, they will be prompted to pick a security question and create a unique password for future logins.

Q: What are the application fees? Is there a military exemption?

A: The resident producer application and licensee fee is $25.00. The non-resident producer application and license fee is $55.00. Surplus Lines application and license fee is $165.00. There are no military exemptions.

Q: I am a first time licensee, how do I get started?

A: As a resident producer, you must take the appropriate licensing exam first. You will need to contact our licensing vendor, Pearson Vue at www.pearsonvue.com to schedule the exam. Once you have passed the exam, you would then submit the application to us for licensure. Please see above regarding how to submit an application.

As a non-resident producer, as long as you have an active resident state license, all you need to do is submit an application for licensure. Maine does not require a Certification and/or Clearance Letter. Please see above regarding how to submit an application.

Q: I have a criminal conviction. Will this stop me from obtaining a license?

A: Not necessarily. There are certain convictions that can be considered for denial of a license however every scenario is reviewed independently and every applicant has a right to a hearing. Please contact the Licensing Division with specific questions.

Q: How do I file my Surplus Lines Tax?

Q: After I become licensed, how and when do I report administrative actions? Criminal actions?

A: Administrative actions. A producer shall report to the superintendent any administrative action taken against the producer in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. This report must include a copy of the order, consent to order or other relevant legal documents.

Criminal actions. Within 30 days of the initial pretrial hearing date, a producer shall report to the superintendent any criminal prosecution of the producer taken in any jurisdiction. The report must include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents.

Q: How do I obtain a letter of certification?

A: Check with the specific state to see if a letter of certification is required, as many no longer do. If one is needed, please submit a request in writing to the Maine Bureau of Insurance, 34 State House Station, Augusta ME 04333, along with a fee of $10. Checks should be made payable to Treasurer, State of Maine. You may also e-mail your request with credit card information www.maine.gov/pfr/insurance/creditcard.docx to insurance.pfr@maine.gov or fax to 207-624-8599.

Q: If an agent holds a full lines license (either L&H or P&C) can they offer limited lines credit insurance under a full lines license without the addition of a credit license? Is there a regulation that outlines this?

A: If a producer holds full L&H authority, that producer can sell credit insurance related to that line (e.g., credit disability). If a producer holds full P&C authority, that producer is able to sell credit insurance related to that line (e.g., credit property). If a producer with P&C authority wishes to sell credit insurance related to life and health, that individual would need to obtain either 1) limited lines credit authority or 2) full L&H authority. http://www.mainelegislature.org/legis/statutes/24-A/title24-Ach16sec0.html

Q: May a producer who is meeting with a client to discuss Medicare products also solicit other products that he or she is licensed to sell, such as life or health insurance, or annuities?

A: No. Under Section 2152-B of the Insurance Code, it is an unfair trade practice to use an appointment that was made to discuss Medicare products or to solicit the sale of Medicare products in order to solicit sales of life insurance, health insurance or annuity products. There is an exception, however, for when the consumer requests the solicitation and the products to be discussed are clearly identified to the consumer in writing at least 48 hours before the appointment. Otherwise, another appointment will have to be scheduled, if life insurance, health insurance or annuities are to be discussed.

Q: When does the Maine Insurance Code allow producers to charge fees?

A: The basic rule is that fees are not allowed. Charges for placing insurance must be as indicated in the company's filings; in other words, the regular premiums as filed, and the resulting commissions. However, there are two circumstances allowing producers to charge fees. First, producers with surplus lines authority may charge a nominal service charge in connection with surplus lines placements. Second, fees in addition to or in lieu of commissions may be charged for large commercial property and casualty risks. This category is defined in Bureau Regulation Chapter 900: http://www.maine.gov/sos/cec/rules/02/031/031c900.doc

Q: Does the Maine Insurance Code require producers to retain records?

Q: If a life or health producer who does not sell, solicit, or negotiate Long Term Care Insurance (LTCI), and has not taken the required training*, refers a client to a producer who has the required training and does sell LTCI, may the LTCI producer share his or her commission with the referring producer?

A: Yes. Section 1450 of the Maine Insurance Code governs the sharing of commissions between licensed producers. The basic rule is that this is permissible as long as each producer has the proper license type. The license authorities for LTCI would be Life or Health. The training requirement does not itself constitute a different license category. Therefore, commission sharing would be permissible between these producers. *http://legislature.maine.gov/statutes/24-A/title24-Asec5081.html

Example 1: Mary is a Maine licensed producer with Health authority. However, she has not taken Long Term Care Insurance (LTCI) training and does not sell such products. She refers a client to Bill, a Maine licensed Health producer who has completed the required training and is authorized to sell LTCI products. The client purchases a LTCI policy from Bill. Bill shares his commission with Mary. Is this allowed?

A: Yes. Commission sharing is permissible as long as each producer has the proper license type. In this case, Mary and Bill are Maine licensed Health producers.

Example 2: Lisa is a Maine licensed producer with only Property & Casualty authority. If she refers a client to Bill, under the same circumstances as above, is Bill able to share the commission from the LTCI product with Lisa?

A: No. Lisa does not hold the required Life or Health authority. Both producers must hold the appropriate authority to share in the commission.

A: No, except for those with nominal value. The anti-rebating laws generally prohibit any person from offering any inducement, discount, or incentive to purchase insurance that is not specifically included in the insurer’s filings. The exception is that a producer may offer gifts valued up to $20 per year per policy or quote in connection with the marketing of insurance, and conduct raffles or drawings with prizes valued at no more than $100, so long as there is no participation costs to entrants. These incentives may not be in the form of cash or cash equivalent.

Example 1: John has opened his new insurance agency, and wants to offer a free MP3 player valued at $24.99 to the first 50 prospective customers to visit his office for an insurance quote. May he do so?

A: No. This is a gift in connection with the marketing of insurance and its value exceeds $20.00. Therefore, this offer is prohibited under the rebating laws.

Example 2: Sue, who is an established producer, wants to reward her loyal customers by providing a yearly $15.00 gift certificate to a local restaurant to each existing policyholder. Do the rebate laws apply to this?

A: Yes. The rebate laws refer to gifts in connection with the marketing of insurance, which is further defined both in terms of the sale of policies, and the retention of existing insurance. Sue’s gifts are for the purpose of rewarding continuing business, and therefore relate to the retention of insurance. These gifts, therefore, are rebates. She is, however, allowed to offer them under the rebating laws, because their value is below $20.00 per year per policy.

Example 3: In order to promote his insurance business, William wishes to hold a drawing at a local Chamber of Commerce event. There is no charge to enter, but the winner will receive a personalized jacket worth $75.00, courtesy of “William’s Insurance Agency.” Is this allowed under the rebate laws?

A: Yes. The maximum allowable value for prizes in connection with free drawings is $100.00.

Example 4: Sarah, using a targeted mailing list, sends $5.00 checks to prospects as part of a promotional mailing encouraging them to contact her office for a quote. Is this allowed?

A: No. Even when the gift is below $20.00, the rebate laws also specify that the gift may not be in the form of cash or cash equivalent such as a check.